Demographics, Psychographics and Personality Essay Example

Demographics, Psychographics and Personality Essay Example Demographics, Psychographics and Personality Essay Demographics, Psychographics and Personality Essay Individual Differences Important tools for segmentation They include: Demographics, psychographics and personality Consumer Motivation (Chapter 8) Consumer Knowledge (Chapter 9) Consumer Beliefs, Feelings, Attitudes and Intentions (Chapter 10) Analyzing and Predicting Consumer Behavior Demographics is the size, structure, and distribution of a population Marketers use demographic analysis as market segment descriptors and in trend analysis I- Demographics A- Structure of Markets B- Geographic Factors C- Economic Resources D- Global Markets A- Structure of Markets Market analysis requires information about People with needs Ability to buy Willingness to buy Authority to buy Affected by: Birthrate Immigration (30% of annual growth in the US) Increasing life expectancy Structure of Markets Affects demand for products and services Marketers can adapt product features, packaging, and communication strategies messages depending on changing age structure of markets Marketing to Children Children make purchases themselves Parents buy for children Marketing to Teenagers Growing in number Greater need for peer acceptance, which often guides product and brand choice More likely to switch brands quicker than other segments (Variety Seeking) Like the social aspects of shopping with friends Marketing to Young Adults 20-34 years Growing Need to buy products to set up households and for young children With many needs and greater financial constraints, they often shop at value-oriented retailers Marketing to Baby Boomers Growing in number Good market for spas, luxury travel, health clubs, cosmetics and healthy food This group may be â€Å"aging† but doesn’t want to be reminded Marketing to â€Å"Young Again† Market Referred to as mature markets, seniors elderly (65 years) Growing substantially Many in this segment are feeling, thinking, and buying younger than previous generations Many have adopted â€Å"young again† lifestyles and attitudes Cognitive age: the age a person perceives himself or herself to be. It can be used for targeting segments within this group, developing more creative content, and selecting more effective media 1. Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets Geographic Factors Geo-demography: Refers to where people live, how they learn and spend their money, and other socioeconomic factors The study of demand related to geographic areas assumes that people who live in proximity to one another also share similar consumption patterns and preferences Cities are the most important unit of analysis in most marketing plans 1. Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets Economic Resources Income: money from wages, salaries, interest, and welfare payments Wealth: a measure of a family’s net worth (assets minus liabilities) Net worth influences willingness to spend but not necessarily ability to spend, since many assets are not liquid and difficult to use How much people accumulate over the year is more a function of how much they save rather than how much they earn Targeting the Up-Market Print-oriented communication Simple ads that promote image Credibility of source selling product Product reviews influence this group Targeting the Average â€Å"Down† Market Good products at reasonable prices Promote value in ads and in store Limited services to keep prices low 1. Demographics Age Structure of Markets Geographic Factors Economic Resources Global Markets Global Market Analysis The most attractive markets are countries that are growing both in population and in economic resources Which countries will grow the most in the future? Which countries have the highest per capita income? 2. Personality Personality: consistent responses to environmental stimuli An individual’s unique psychological makeup, which consistently influences how the person responds to his or her environment 3. Personal Values Values: Represent consumer beliefs about life and acceptable behavior Unlike attitudes, values transcend situations or events and are more enduring because they are more central in the personality structure 4. Lifestyles Lifestyles: Patterns in which people live and spend time and money Reflect their AIO Measures: Activities, Interests, and Opinions Since lifestyles change readily, marketers must keep research methods and marketing strategies updated Lifestyles can affect which goods are sold and how they should be positioned Lifestyles are a very popular tool for segmentation AIO Categories of Lifestyles Psychographics An operational technique to measure lifestyles Can be used in qualitative and quantitative research methods Demographics focus more on who buys products; psychographics focus on why they buy them Lifestyle Segmentation Develop a deeper understanding of a segment or define segment (Compare to Demographics) Gain understanding of which lifestyles influence purchase and consumption behaviors Marketers can develop communication packaging strategies accordingly